Main Article Content
The objective of this research was to examine the effect of corporate governance on accounting conservatism in listed companies in Thailand. This study concentrated on the major characteristics as specified in the Corporate Governance Code for Listed Companies 2017: board structure, board activity, compensation, shareholder structure, and audit committee. Empirical research samples were listed companies on the Stock Exchange of Thailand from 2018 to 2019, excluding listed companies in the process of rehabilitation and companies in the financial institution sector. Thus, there were 906 firms-year observations in total. The data were analyzed by means of Multiple Linear Regression at a significance level of .05. The results revealed that board activity, compensation, shareholder structure, and audit committee had a positive and significant effect on accounting conservatism. However, board structure had no significant influence on accounting conservatism.
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Ahmed, A. S., & Duellman, S. (2007). Accounting conservatism and board of director characteristics: an empirical analysis. Journal of Accounting and Economics, 43, 411-437.
Al-Absy, M. S. M., Ismail, K. N. I. K., & Chandren, S. (2019). Corporate governance mechanisms and family directives: Aggressive or conservative in earnings' management?. Academy of Accounting and Financial Studies Journal, 23(1), 1-9.
Ball, R. (2001). Infrastructure requirements for an economically efficient system of public financial reporting and disclosure. Brookings-Wharton Papers on Financial Services, Washington, DC, 127-169.
Barker, R., & McGeachin, A. (2015). An analysis of concepts and evidence on the question of whether IFRS should be conservative. Abacus, 51, 169–207.
Basu, S. (1997). The conservatism principle and the asymmetric timeliness of earnings. Journal of Accounting and Economics, 24, 3-37.
Blunck, R., & Rego, S. (2013). Evidence on the contracting explanation of conservatism. Journal of Finance & Accountancy, 1-24.
Boonlert-U-Thai, K., & Phakdee, A. (2018). Board Characteristics, Accounting Conservatism, and Firm Performance of Thai Listed Companies. Journal of Accounting Profession, 14(43), 27-47.
Boussaid, N., Hamza, T., & Sougne, D. (2015). Corporate board attributes and conditional accounting conservatism: Evidence from French firms. Journal of Applied Business Research, 31(3), 871.
Brockman, P., Ma, T., & Ye, J. (2015). CEO Compensation Risk and Timely Loss Recognition. Journal of Business Finance & Accounting, 42(1-2), 204-236.
Cahyani, E. P. A., & Khafid, M. (2020). The Role of Accounting Conservatism in Moderating the Determinants of Earning Quality. Jurnal Dinamika Akuntansi, 12(1), 46-54.
Cascino, S., Pugliese, A., Mussolino, D., & Sansone, C. (2010). The influence of family ownership on the quality of accounting information. Family Business Review, 23(3), 246-265.
Chou, T. K. (2015). Insider Ownership and Firm Performance: A Resource Dependence Perspective. The Journal of Applied Business Research, 31(3), 861-870.
Dao, M., HassabElnaby, H. R., & Said, A. (2015). The Impact of Audit Committee and Shareholder Activism on the Association between Audit-Firm Tenure and Accounting Conservatism. Accounting and Finance Research, 4(1), 112-128.
Enache, L., & Garcia-Meca, E. (2019). Board Composition and Accounting Conservatism: The Role of Business Experts, Support Specialist and Community Influentials. Australian Accounting Review, 29(1), 252-265.
Fama, E., & Jensen, M. (1983). Agency problems and residual claims. Journal of Law and Economics, 26, 325-344.
Hillman, A. J., Cannella, A. A., & Paetzold, R. L. (2000). The Resource Dependence Role of Corporate Directors: Strategic Adaptation of Board Composition in Response to Environmental Change. Journal of Management Studies, 37(2), 235-256.
Hu, C., & Jiang, W. (2018). Managerial risk incentives and accounting conservatism. Review of Quantitative Finance and Accounting, 1-33.
Iwasaki, T., Otomasa, S., Shiiba, A., & Shuto, A. (2018). The role of accounting conservatism in executive compensation contracts. Journal of Business Finance & Accounting, 45(9-10), 1139-1163.
Janafzaei, N., & Hasani, M. (2015). Managerial Ownership and Accounting Conservativeness. Journal of Strategic Management Studies, 6(21), 109-124.
Jensen, C., & Mecking, H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360.
Jensen, M. C., & Murphy, K. J. (1990). Performance pay and top management incentives. J. Political Econ, 98, 225-264.
Jeong, K., & Kim, H. (2013). Equity-Based Compensation to Outside Directors and Accounting Conservatism. The Journal of Applied Business Research, 29(3), 225-300.
Korn, K., & Ferry, L. (1999). Survey of Corporate Governance. Korn/Ferry.
KPMG. (2006). Audit committees feel most exposed to litigation. http://www.accountingeducation.com/index.cfm?page=newsdetails&id=143072
LaFond, R., & Roychowdhury, S. (2008). Managerial ownership and accounting conservatism. Journal of Accounting Research, 46(1), 101-135.
LaFond, R., & Watts, R. L. (2008). The information role of conservatism. The Accounting Review, 83(2), 447-478.
Li, H., Henry, D., & Wu, X. (2020). The effects of accounting conservatism on executive compensation. International Journal of Managerial, 16(3), 393-411.
Mazzotta, R., & Veltri, S. (2014). The relationship between corporate governance and the cost of equity capital. Evidence from the Italian stock exchange. J Manag Gov, 18, 419-448.
Memon, J. A., Fei, G., Shaique, M., Usman, M., & Nazir, M. I. (2020). Moderating Influence of Audit Quality on The Relationship between Concentrated Ownership and Accounting Conservatism: in Pakistani Listed Firms: Empirical Evidence from GMM Technique. Journal of Critical Reviews, 7(5), 5-24.
Mohammed, N. H., Ahmed, K., & Ji, X. D. (2017). Accounting conservatism, corporate governance and political connections. Asian Review of Accounting, 25(2), 288-318.
Mohammed, N. H., Ismail, K. N. I. K., & Amran, N. A. (2019). Corporate Governance and Accounting Conservatism: The Moderating Role of Family Ownership. Finance, Accounting and Business Analysis, 1(1), 73-77.
Nariman, A., & Ekadjaja, M. (2018). Implikasi Corporate Governance, Investment Opportunity Set, Firm Size, Dan Leverage Terhadap Earnings Quality. Jurnal Ekonomi, 23(1), 33-47.
Nasr, M. A., & Ntim, C. G. (2018). Corporate governance mechanisms and accounting conservatism: evidence from Egypt. Corporate Governance 18(3), 386-407.
Saeed, M. Bilal. (2020). Corporate Governance and Accounting Conservatism: Empirical Evidence from Emerging Markets of South Asia [Doctoral dissertation, Capital University of Science & Technology, Islamabad, Pakistan].
Salama, F.M., & Putnam, K. (2015). Accounting conservatism, capital structure, and global diversification. Pacific Accounting Review, 27(1), 119-138.
Srijunpet, S. (2012). Corporate Governance. Journal of Business Administration, 35(133), 1-4.
Suleiman., S. (2014). Coporate Governance Mechanisms and Accounting Conservatism. Journal of Management Policies and Practices, 2(2), 113–127.
Sultana, N. (2015). Audit Committee Characteristics and Accounting Conservatism. International. Journal of Auditing, 19, 88-102.
The Financial Accounting Standards Board (FASB). (2010). Conceptual Framework. Statement of Financial Accounting Concepts, 8, 1-42.
The Securities and Exchange Commission (SEC). (2017). Corporate Governance Code for listed companies 2017. https://www.sec.or.th/TH/Documents/CompanyHandbooksand Guidelines/CGcode2560_th.pdf
The Stock Exchange of Thailand (SET). (2022). Summary of the stock market situation in December 2021. News Release, (1), 1-12.
Ursula, E. A., & Adhivinna, V. V. (2018). Pengaruh Kepemilikan Manajerial Ukuran Perusahaan, Leverage, Dan Growth Opportunities Terhadap Konservatisme Akuntansi. Jurnal Akuntansi, 6(2), 194-206.
Watts, R. (2003). Conservatism in accounting Part I: explanations and implications. Accounting Horizon, 17, 207–221.
Yermack, D. (1996). Higher market valuation of companies with a small board of directors. Journal of Financial Economics, 40(2), 185-211.
Yunos, R. M., Ahmad, S. A., & Sulaiman, N. (2014). The Influence of Internal Governance Mechanisms on Accounting Conservatism. Procedia-Social and Behavioral Sciences, 164, 501-507. https://doi.org/10.1016/j.sbspro.2014.11.138